Zscaler, Inc. $ZS Stock: Kestra Private Wealth Services LLC Increases Holdings

Kestra Private Wealth Services LLC lifted its holdings in shares of Zscaler, Inc. (NASDAQ:ZS) by 84.2% during the third quarter, Holdings Channel reports. The fund owned 11,820 shares of the company’s stock after purchasing an additional 5,403 shares during the quarter. Kestra Private Wealth Services LLC’s holdings in Zscaler were worth $2,357,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of ZS. BlackRock Inc. acquired a new position in shares of Zscaler in the second quarter worth about $1,396,028,000. First Trust Advisors LP grew its stake in Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares in the last quarter. Amundi grew its stake in Zscaler by 12.8% during the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after purchasing an additional 129,563 shares in the last quarter. Wellington Management Group LLP grew its stake in Zscaler by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock valued at $155,718,000 after purchasing an additional 209,711 shares in the last quarter. Finally, International Assets Investment Management LLC grew its stake in Zscaler by 23,646.1% during the 3rd quarter. International Assets Investment Management LLC now owns 606,000 shares of the company’s stock valued at $120,849,000 after purchasing an additional 603,448 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Trading Down 9.2%

Shares of NASDAQ ZS opened at $203.88 on Friday. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock’s 50 day moving average price is $207.81 and its two-hundred day moving average price is $167.72. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $333.90. The stock has a market capitalization of $33.24 billion, a P/E ratio of -522.77, a PEG ratio of 21.34 and a beta of 0.82.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. The business’s revenue was up 24.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, analysts anticipate that Zscaler, Inc. will post 0.70 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the business’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the sale, the director owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 514 shares of the business’s stock in a transaction on Monday, October 26th. The shares were sold at an average price of $259.15, for a total transaction of $133,203.10. Following the sale, the chief financial officer owned 62,113 shares of the company’s stock, valued at approximately $16,096,583.95. The trade was a 0.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 55,105 shares of company stock valued at $11,563,836. 17.20% of the stock is currently owned by insiders.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: AI security demand and continued adoption of Zero Trust are potential growth supports, according to a recent Zacks analysis, which nevertheless recommended a hold. Zacks analysis of Zscaler’s outlook
• Neutral Sentiment: Zscaler said it will report first-quarter fiscal 2027 results after market close on December 2 and hold an investor call that day. The announcement sets the next major earnings catalyst but did not provide new financial results. Earnings call announcement
• Neutral Sentiment: Insider Adam Geller sold 1,041 shares under a pre-arranged Rule 10b5-1 plan, a relatively small reduction in his holdings. Insider transaction report
• Negative Sentiment: Coverage cited slowing growth and rising spending as headwinds. On the latest session, Zscaler fell alongside Cloudflare, Datadog, Elastic and Palantir, suggesting a broader pullback in growth-oriented technology shares also weighed on the stock. Report on declines in software and cybersecurity shares

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Jefferies Financial Group upped their target price on Zscaler from $220.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. BMO Capital Markets raised their price target on shares of Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a research report on Friday, September 4th. Royal Bank Of Canada restated an “outperform” rating and issued a $236.00 price target on shares of Zscaler in a research note on Wednesday, October 7th. Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Friday, October 2nd. Finally, UBS Group upped their price target on shares of Zscaler from $225.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, October 7th. Thirty-six investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $236.65.

Zscaler Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization’s network to users.